This presentation on Business Innovation Management evolved based on questions from busness owners that I have been in touch with and helped understanding the concept.

1. What is Innovation Management
Christopher Michael
Innovation Practitioner
A brief introduction by:

2. Why invest in innovation?
The world has never changed
this fast but will probably never
change this slow again.

3. Averagelife length
ofa company
(in years)
67
15
1920 Today
Year
3

4. Basis of Innovation Management
Innovation management is based on some of the
ideas put forth by the Austrian economist Joseph
Schumpeter, working during the 1930s, who
identified innovation as a significant factor in
economic growth.
2017 Christopher Michael – Innovation Practitioner 4

5. S-CURVES for TWO HORIZONS
Emergent Growth Mature
Performance/Valueoffering
Effort / Time
Ongoing business
(EXPLOITATIVE –
INCREMENTAL)
Business of the future
(EXPLORATORY -
RADICAL)
The challenge for Innovators:
to achieve a strategically balanced portfolio between exploitative (Incremental H1)
and exploratory (Radical H2/H3) – based on a full recovery on its capabilities
Source: Adopted from Tovstiga (2007)
2017 Copyright Innovation360 Group AB 5

6. What is Innovation Management?
Innovation management is a combination of
the management of innovation processes, and
change management.
It refers both to product, business process, and
organizational innovation. Innovation management is
the subject of ISO 50500 series standards developed
by ISO TC 279.
Christopher Michael – Innovation Practitioner 6

7. “Either you innovate or you’re in commodity
hell. If you do what everyone else does, you
have a low-margin business.That’s not where
you want to be.”
Sam Palmisano, X-CEO IBM
HYPER COMPETITION
2017 Copyright Innovation360 Group AB 7

8. Role of Innovation Management
Innovation, although not sufficient, is a necessary
prerequisite for the continued survival and
development of enterprises. The most direct way of
business innovation is through technological
innovation, disruptive innovation or social innovation.
Management of innovation, however, plays a
significant role in promoting technological and
institutional innovation.
Christopher Michael – Innovation Practitioner 8

9. 6 jun -18 © Innovation360 Group AB 9
Why?
The Strategic Questions
The Strategic
Questions
Increase barriers to enter or copy
Differentiation and neutralization
of competitors
Focus on competitive advantages
Increase internal efficiency
Cost savings
Radical opportunities
Market / Growth Profitand/or
• Where is your business now?
• Are you doing either one or both.
• Have you strategically achieved it?
• On what internal strengths have you based you next
Innovation Plans?

10. Innovation Management Tools
Innovation management includes a set of tools that
allow managers and engineers to cooperate with a
common understanding of processes and goals.
By utilizing innovation management tools,
management can trigger and deploy the creative
capabilities of the work force for the continuous
development of a company.
The process can be viewed as an evolutionary
integration of organization, technology and market by
iterating series of activities: search, select, implement
and capture.
Christopher Michael – Innovation Practitioner 10

11. The Innovation Framework
Strategic Question
• Profit?
• Market?
Type of Innovation Strategy
• Incremental/Radical
Innovation Strategy
• Need seeker
• Market reader
• Technology driven
Type of Innovation
• Products
• Processes
• Organizational Structures
• Management System
• Production
• Business Model
• Services
Leadership Style
• Cauldron
• Spiral Staircase
• Fertile Field
• PacMan
• Explorer
Personas
• 10 Faces of Innovation
Capabilities (66)
Innovation Process
• Ideation
• Project Selection
• Development
• Commercialisation
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Source: Penker (2011, 2017)
Why ? What ? How ?
2017 Copyright Innovation360 Group AB 11
An Innosurvey® will tell you the
“now” of the Why? What? & How?
The results of the Innosurvey® will guide you
to the capabilities and Innovation Strategy
needed for the future of Why? What? & How?

12. Why Innovate?
Innovation management allows the organization to
respond to external or internal opportunities, and use
its creativity to introduce new ideas, processes
or products.
2017 Christopher Michael – Innovation Practitioner 12

13. About 50% of today’s jobs will be digitalised within the
next 20 years. (e.g. the ”Industrie 4.0” initiative in
Germany).
Alongside this, we will see exponential growth in
information-driven areas such as AI, Analytics, Media
and Communication as well as pico-technology and
possible free energy in the future.
Historically low interest rates are driving technological
investment and R&D.
The EU offers innovation-checks,
and additionally its Horizon 2020 programme has EUR 80
billion to invest to further strengthen R&D and
Innovation in Europe.
MOOCs (free massive online open courses provided
through leading universities) help provide a larger range
of qualified workers, also leading to an increased
demand for goods and services.
People for the first time can create value by only using
their brand and an Internet connection.
Globally increased transparency, information and
knowledge-sharing.
Increased demand and requirements drive the suppliers
of goods from ”commodity providers” to ”niche players”
2017 Copyright Innovation360 Group AB 13
WHY (Innovate)?
GLOBAL KEY DRIVERS

14. Innovation Team – Who does it involve?
Innovation involves workers at every level in
contributing creatively to a company's product
development, manufacturing and marketing.
2017 Christopher Michael – Innovation Practitioner 14
A company is not only top management, nor
is it only middle management. A company is
everyone, from the top to a front line
W. Chan Kim and Renée Mauborgne, professors at INSEAD and co-directors of
the INSEAD Blue Ocean Strategy Institute.

15. “The Eight Shades of Innovation”
6 jun -18 © Innovation360 Group AB 15
Driving
Market
Driving
Profit
Driving Internal
Transformation
Driving External
Transformation
Offer
Innovation
Sales
Innovation
Organizational
Innovation
Marketing
Innovation
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”Eight Shadows”
thinking enables an
initial, rapid analysis of
possible capability gaps!
• Where are you innovating?
• Why are you innovating there?
• What resources are you using?
• How will you do it?
• What does the BMC comparison tell
you?

16. Innovation Processes
Innovation processes can either be pushed or pulled through
development.
A pushed process is based on existing or newly invented
technology, that the organization has access to, and tries to find
profitable applications for.
A pulled process is based on finding areas where customers
needs are not met, and then find solutions to those needs.
To succeed with either method, an understanding of both the
market and the technical problems are needed. By creating
multi-functional development teams, containing both engineers
and marketers, both dimensions can be solved.
2017 Christopher Michael – Innovation Practitioner 16

17. 2017 Copyright Innovation360 Group AB 17
How?
Leadership Styles and the Three Innovation Horizons
Horizon 1 Horizon 2 Horizon 3
Scope Core Business Growth business Future business
Strategic Focus
Exploit and optimize existing business,
incremental innovation
Expanding existing and building
new business, adjacent innovation
Explore options, place small bets
on emerging opportunities,
radical innovation
Innovation Strategy
Market Reader, Technology Drivers
(incremental)
Technology Drivers (partly radical)
and Need Seeker
Technology Drivers (Radical)
and Need Seeker
Leadership Style Spiral Staircase Cauldron, Fertile Field, Pacman Explorer
Capabilities with strong correlation
to strategy and leadership
Clear Vision, Goal-Oriented Leadership,
Core Focus,
Market Insights
Platform and Design thinking, Prototyping,
Speed to market, Project Selection,
Ideation
External knowledge sharing,
Co-Creation, Open Innovation,
Anthropology, Technology Watch
Competencies Fully assembled To be acquired or developed Requirements uncertain
Metrics Return On Investment
Net Present Value based on
prototyping and hypothesis
Strategic Option Value based on scenarios
Source: Penker (2016). Based on the work of Ralph-Christian Ohr and Kevin McFarthing. 1 Based on Jaruzelski & Dehoff (2010). 2 Based on Loewe, Williamson, Chapman Wood
(2001). All data is collected and analyzed in InnoSurveyTM (2016).

18. Innovation & Product Lifecycle
The product lifecycle of products is
getting shorter because of increased
competition. This forces companies to
reduce the time to market. Innovation
managers must therefore decrease
development time, without sacrificing
quality or meeting the needs of the
market.
2017 Christopher Michael – Innovation Practitioner 18
Scope
Strategic Focus
Innovation Strategy
Leadership Style
Capabilities with strong correlation
to strategy and leadership
Competencies
Metrics

19. The Home of Innovation
 Creating a consistent innovation engine
DESIGN&CHANGE
Howdoyouenablethe
organisation toinnovate
long-term?
STRATEGY
Whereareyouheaded&howdo
youdesigntheorganisation
toimplementstrategy?
INSIGHT
Whatareyourinnovation
capabilitiesandlevelof
readiness? Profit
Growth
• InnovationAssessment:
• Measurereadinesstoinnovate
• Benchmarkwithtopinnovators
• Identifygrowthgaps&gain
insighton
strengths/weaknessestoenable
change
• Quant+qual(data+in-field
work)
• SetStrategicDirection
• Define&prioritizestrategic
initiativesina3-horizonportfolio
• Setrequirementsoncapabilities
&competencies
• Defineprinciplesfor
organizationalsetup
• Implement organizational design
• Governance,process&change
• InnovationToolsforsupport
• InnovationBoardandTaskforce
Coaching:
• Hypothesis-based approach
• Exploration anddecision makingthat
supportsstrategy
• Createcommonlanguage&build
capabilities
Destination & ambition
with your innovation
efforts?
2017 Copyright Innovation360 Group AB 19
Do an Innosurvey to know What areyourinnovation
capabilities and level of readiness?
Contact: Christopher Michael at Christopher@eclecticinnovationsindia.com
WhatsApp - +919872981425

20. Goal of Innovation Management
The goal of innovation management within a
company is to cultivate a suitable environment to
encourage innovation. The suitable environment
would help the firms get more cooperation projects,
even ‘the take-off platform for business ventures’.
Senior management's support is crucial to successful
innovation; clear direction, endorsement, and support
are essential to innovation pursuits.
2017 Christopher Michael – Innovation Practitioner 20

21. Good news
Next step
 It is possible to assess and measure leadership,
strategy and capabilities for innovation
 It is possible to strengthen leadership and
capabilities for innovation
 It is possible to link strategy and innovation
execution
 It is possible to mitigate risks with a balanced
portfolio
 Design, implement, and run an innovation system
will allow your company to stay ahead of its
competitors
Innovation360 and Eclectic Innovations can help
you move ahead in Innovation Management
Christopher Michael - Innovation Practitioner
Contact: Christopher@eclecticinnovationsindia.com. WhatsApp - +919872981425
The journey starts now!